ISLAMABAD: Secretary, Economic Affairs Division Dr. Syed Pervaiz Abbas and Country Director, ADB Ms. Xiaohong Yang signed a document here today according to which ADB had agreed to provide concessional loan to Pakistan for urban development projects in Punjab.
ADB expressed strong commitment to further the cooperation for socio-economic development of Pakistan. It is pertinent to mention here that the concessional loan is a Project Readiness Financing (PRF) facility for engineering and designing urban development projects in Punjab’s seven major cities as identified by the provincial government.
The provincial Local Government & Community Development Department is the Executing Agency for the subject project scheduled to be completed by 31st October, 2022. The PRF shall prepare readiness for ensuing projects in Bahawalpur, Dera Ghazi Khan, Multan, Muzaffargarh, Rahim Yar Khan, Rawalpindi, and Sargodha.
Earlier ADB had approved $2 million grant to enable Pakistan government effectively attempt to handle COVID-19 crisis.
The amount was meant to enable Pakistan purchase emergency medical supplies, personal protective equipment, diagnostic/laboratory supplies, and other equipment using the money coming from Asia Pacific Disaster Response Fund.
ADB Country Director Xiaohong Yang while commenting on the grant had stated: “ADB recognizes the extraordinary burden of this pandemic on Pakistan and is committed to supporting Pakistan in the fight to control COVID-19. This grant will help strengthen COVID-19 detection, improve infection prevention and control, and boost Pakistan’s capacity to respond to the pandemic.”
Quite some time ago Asian Development Bank (ADB) had approved one billion dollars budgetary support for Pakistan in order to facilitate the country further ameliorate its financial and economic state of affairs.
It is pertinent to mention here that loan was approved after the government implemented a series of reforms and actions, supported by IMF, in order to improve the country’s current account deficit, strengthen its revenue base, and protect the poor against the social impact of the economic crisis.
According to Director General for Central and West Asia Werner Liepach ADB was committed to provide Pakistan support enabling it to strengthen its economy: “These funds will meet the government’s emergency financing needs to prevent significant adverse social and economic impacts and lay the foundations for a return to balanced growth.”
ADB had also approved a $300 million policy-based loan to aid the government in ensuring financial stability, governance and tackling hurdles in the policy infrastructure in Pakistan’s energy sector. The financing is expected to support the first of three sub-program totaling $1 billion under the Energy Sector Reforms and Financial Sustainability Program.
ADB predicted that the country’s economy would grow slower than last year, with GDP growth projected at 2.8 per cent in the fiscal year 2020. According to ADB, economic growth in Pakistan had decelerated during the fiscal year 2019 due to lower investment amid policy uncertainty and persistent macroeconomic imbalances.
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